Title 13 — Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions
37 chapters · 866 sections in this title.
AS 13.38.010 Secs. 13.38.010 — 13.38.140. [Repealed, § 4 ch 145 SLA 2003.]
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Article 1. Preliminary Provisions; Power to Adjust.
AS 13.38.200 Fiduciary duties; general principles.
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(a) In allocating receipts and disbursements to or between principal and income and with respect to any matter within the scope of this chapter, a fiduciary (1) shall administer a trust or estate in accordance with the governing instrument, even if there is a different provision …
AS 13.38.210 Trustee's power to adjust.
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(a) Subject to (c) and (f) of this section, a trustee may adjust between principal and income by allocating an amount of income to principal or an amount of principal to income to the extent the trustee considers appropriate if (1) the governing instrument describes what may or s…
AS 13.38.220 Judicial control of discretionary powers.
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Article 2. Unitrusts. (a) A court may not change a fiduciary's decision to exercise or not to exercise a discretionary power conferred by this chapter unless the court determines that the decision was an abuse of the fiduciary's discretion. (b) If a court determines that a fiduci…
AS 13.38.300 Power to convert to unitrust.
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Unless expressly prohibited by the governing instrument, a trustee may release the power to adjust under AS 13.38.210 and may convert a trust into a unitrust as described in AS 13.38.300 — 13.38.435 if (1) the trustee determines that the conversion will enable the trustee to bett…
AS 13.38.310 Judicially approved conversion; beneficiary request for conversion.
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(a) A trustee may petition the court to approve the conversion to a unitrust if (1) a beneficiary timely objects to the conversion to a unitrust; (2) there is not a sui juris beneficiary who is currently eligible under AS 13.38.300(2)(A) or who would be eligible under AS 13.38.30…
AS 13.38.320 Factors to be considered.
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In deciding whether to exercise the power conferred by AS 13.38.300, a trustee may consider, among other things, (1) the size of the trust; (2) the nature and estimated duration of the trust; (3) the liquidity and distribution requirements of the trust; (4) the need for regular d…
AS 13.38.330 Directions after conversion.
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(a) After a trust is converted to a unitrust, the trustee shall (1) follow an investment policy seeking a total return for the investments held by the trust, whether the return is to be derived from (A) appreciation of capital; (B) earnings and distributions from capital; or (C) …
AS 13.38.340 Trustee's discretionary powers regarding unitrust.
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The trustee may, in the trustee's discretion, from time to time, determine (1) the effective date of a conversion to a unitrust; (2) the provisions for prorating a unitrust distribution for a short year in which a beneficiary's right to payments commences or ceases; (3) the frequ…
AS 13.38.350 Unitrust deductions and distributions.
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(a) Expenses that would be deducted from income if the trust were not a unitrust may not be deducted from the unitrust distribution. (b) Unless otherwise provided by the governing instrument, a unitrust distribution shall be considered to have been paid from net income as net inc…
AS 13.38.360 Court orders regarding unitrust.
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The trustee or, if the trustee declines to petition the court, a beneficiary may petition the court to provide for a distribution of net income, as would be determined if the unitrust were not a unitrust, in excess of the unitrust distribution if the distribution is necessary to …
AS 13.38.370 Effects of conversion.
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A conversion to a unitrust does not affect a provision in the governing instrument directing or authorizing the trustee to distribute principal or authorizing a beneficiary to withdraw a portion or all of the principal.
AS 13.38.380 Prohibited conversions; exception.
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(a) A trustee may not convert a trust into a unitrust if (1) payment of the unitrust distribution would change the amount payable to a beneficiary as a fixed annuity or a fixed fraction of the value of the trust assets; (2) the unitrust distribution would be made from an amount t…
AS 13.38.390 Permissible conversion where otherwise prohibited.
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(a) If AS 13.38.380(a)(3), (4), or (6) applies to a trustee and there is more than one trustee, a co-trustee to whom the provision does not apply may convert the trust, unless the exercise of the power by the remaining trustee is prohibited by the governing instrument. (b) If AS …
AS 13.38.400 Reconversion from a unitrust.
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A trustee may reconvert a trust that has been converted into a unitrust under AS 13.38.300 by following the same procedures provided in AS 13.38.300 — 13.38.435 for converting a trust into a unitrust. If a unitrust is reconverted under this section, the trustee's power to adjust …
AS 13.38.410 Release of power to convert to unitrust.
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(a) A trustee may release the power conferred by AS 13.38.300 to convert to a unitrust if the trustee (1) is uncertain about whether possessing or exercising the power will cause a result described in AS 13.38.380(a)(3), (4), or (5); or (2) determines that possessing or exercisin…
AS 13.38.420 Express total return unitrusts.
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(a) This section applies to a trust that, by its governing instrument, requires the distribution, at least annually, of a unitrust amount. (b) The trustee of an express total return unitrust may determine the unitrust amount by reference to the net fair market value of the unitru…
AS 13.38.430 Power to treat gains as part of distribution of principal.
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Unless prohibited by the unitrust's governing instrument or specifically addressed by AS 13.38.350 or 13.38.420, the trustee of a unitrust may treat gains from the sale of capital assets of the unitrust as part of a distribution of principal to a beneficiary, and, if the trustee …
AS 13.38.435 Definitions.
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Article 3. Charitable Trust Election. In AS 13.38.300 — 13.38.435, (1) “smoothing period” means the period of years over which the fair market value of the assets of a unitrust are averaged; (2) “unitrust percentage” means the unitrust percentage established under AS 13.38.330(d)…
AS 13.38.440 Charitable trust election.
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The trustee of a trust held exclusively for charitable purposes may elect to be governed by AS 13.38.440 — 13.38.490 unless the governing instrument expressly provides that the election provided by AS 13.38.440 — 13.38.490 is not available.
AS 13.38.450 Requirements for making election.
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To make an election under AS 13.38.440 — 13.38.490, the trustee shall adopt and follow an investment policy seeking a total return for the investments held by the trust, whether the return is to be derived from appreciation of capital or earnings and distributions with respect to…
AS 13.38.460 Selection of percentage after charitable trust election.
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(a) After a trustee has elected under AS 13.38.440 for the trust to be governed by AS 13.38.440 — 13.38.490, the trustee shall, in a writing maintained as part of the permanent records of the trust, select the percentage of the value of the trust that will be considered income an…
AS 13.38.470 Revocation of charitable trust election.
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The trustee may revoke an election to be governed by AS 13.38.440 — 13.38.490 if the revocation is made as part of an alternative investment policy seeking the long-term preservation of the real value of the principal of the trust. The revocation and alternative investment policy…
AS 13.38.480 Value determination.
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For the purposes of applying AS 13.38.440 — 13.38.490, the value of the trust is the fair market value of the cash and other assets held by the trustee with respect to the trust, whether these assets would be considered income or principal under the other provisions of this chapt…
AS 13.38.490 Definitions.
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Article 4. Decedent's Estate or Terminating Income Interest. In AS 13.38.440 — 13.38.490, except as otherwise expressly stated in AS 13.38.440 — 13.38.490, (1) “income” means the percentage of the value of the trust computed under AS 13.38.440 — 13.38.490; (2) “principal” means a…
AS 13.38.500 Determination and distribution of net income.
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After a decedent dies in the case of an estate, or after an income interest in a trust ends, a fiduciary (1) of an estate or of a terminating income interest shall determine the amount of net income and net principal receipts received from property specifically given to a benefic…
AS 13.38.510 Distribution to residuary and remainder beneficiaries.
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Article 5. Allocation and Payment at Beginning and End of Income Interest. (a) Each beneficiary described in AS 13.38.500(4) is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the…
AS 13.38.550 When right to income begins and ends.
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(a) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins (1) on the date specified in the governing instrument; or (2) if a date is not specified, on the date an asset becomes subject to a trust or successive…
AS 13.38.560 Allocation of receipts and disbursements when decedent dies or income interest begins.
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(a) Unless AS 13.38.500(1) applies, a trustee shall allocate an income receipt or disbursement to principal if its due date occurs before (1) a decedent dies, in the case of an estate; or (2) an income interest begins, in the case of a trust or successive income interest. (b) A t…
AS 13.38.570 Payment when income interest ends.
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Article 6. Allocation of Receipts during Administration of Trust. (a) When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to…
AS 13.38.600 Allocation of property from entities.
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(a) Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity, including reinvested cash dividends. (b) A trustee shall allocate the following receipts from an entity to principal: (1) property other than money excluding reinve…
AS 13.38.610 Distribution from trust or estate.
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(a) A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest. (b) A trustee shall allocate to principal an amount received as a distribution of principal from a t…
AS 13.38.620 Business and other activities conducted by trustee.
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(a) If a trustee that conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or other activity instead of accounting for it as part of the trust's general accounting records, the trustee may…
AS 13.38.630 Principal receipts.
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A trustee shall allocate to principal any of the following: (1) to the extent not allocated to income under this chapter, assets received from (A) a transferor during the transferor's lifetime; (B) a decedent's estate; (C) a trust with a terminating income interest; or (D) a payo…
AS 13.38.640 Rental property.
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(a) To the extent that a trustee accounts for receipts from rental property under this section, the trustee shall allocate an amount received as rent of real or personal property to income, including an amount received for cancellation or renewal of a lease. (b) An amount receive…
AS 13.38.650 Obligation to pay money.
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(a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, shall be allocated to income without any provision for amortization …
AS 13.38.660 Insurance policies and similar contracts.
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(a) Except as otherwise provided in (b) or (c) of this section, a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee ag…
AS 13.38.670 Special rules for charitable remainder unitrusts.
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Notwithstanding the other provisions of this chapter, if a charitable remainder unitrust, as defined in 26 U.S.C. 664 (Internal Revenue Code), owns an obligation described in (2) of this section, the following rules apply, unless varied by the governing instrument: (1) an obligat…
AS 13.38.680 Insubstantial allocations not required.
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If a trustee determines that an allocation between principal and income required by AS 13.38.690, 13.38.700, 13.38.710, 13.38.720, or 13.38.750 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in AS 13.38.210(c) a…
AS 13.38.690 Retirement benefits, individual retirement accounts, deferred compensation, annuities, and similar payments.
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(a) A trustee shall allocate (1) to income that portion of a payment that equals the greater of the following: (A) the portion that the payor characterizes as interest, a dividend, a remittance in place of interest, or a remittance in place of a dividend; or (B) the portion that …
AS 13.38.700 Liquidating assets.
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(a) A trustee shall allocate 10 percent of the receipts from a liquidating asset to income and the balance to principal. (b) In this section, “liquidating asset” (1) means (A) an asset the value of which will diminish or terminate because the asset is expected to produce receipts…
AS 13.38.710 Minerals, water, and other natural resources.
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(a) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources under this section, the trustee shall allocate them as follows: (1) if received as nominal delay rent or nominal annual rent on a lease, a receipt shall be allocated to …
AS 13.38.720 Timber.
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(a) To the extent that a trustee accounts for receipts from the sale of timber and related products under this section, the trustee shall allocate the net receipts (1) to income, to the extent that the amount of timber removed from the land does not exceed the rate of growth of t…
AS 13.38.730 Property not productive of income; marital deduction.
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(a) If a federal estate or gift tax marital deduction is allowed for all or part of a trust whose income is required to be paid to the settlor's or testator's spouse and whose assets consist substantially of property that does not provide the spouse with sufficient income from or…
AS 13.38.740 Derivatives and options.
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(a) To the extent that a trustee does not account under AS 13.38.620 for transactions in derivatives, the trustee shall allocate receipts from and disbursements made in connection with those transactions to principal. (b) If a trustee grants an option to buy property from the tru…
AS 13.38.750 Asset-backed securities.
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Article 7. Allocation of Disbursements During Administration of Trust. (a) If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the trustee shall allocate the portion of the payment that the payor identifi…
AS 13.38.800 Mandatory disbursements from income.
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A trustee shall make the following disbursements from income: (1) interest, except interest on taxes described in AS 13.38.810(a)(7); (2) ordinary repairs; (3) real estate and other regularly recurring taxes assessed against principal; (4) recurring premiums on fire or other insu…
AS 13.38.810 Mandatory disbursements from principal.
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(a) A trustee shall make the following disbursements from principal: (1) extraordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income; (2) extraordinary repairs; (3) compensation for legal serv…
AS 13.38.820 Discretionary allocation of expenses.
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Subject to AS 13.38.800 and 13.38.810, a trustee may, in the trustee's discretion, allocate to income or principal or partly to each ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, inc…
AS 13.38.830 Transfers to principal for depreciation.
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(a) A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation. However, a trustee may not transfer any amount for depreciation (1) of that portion of real property used or available for use by a benefic…